TRUBAR (SBBC) Q4 2024 earnings summary

Executive summary

• Completed major restructuring and rebranding, shifting focus entirely to the TRUBAR brand for 2025, including divesting the No B.S. brand.

• Achieved strong performance in 2024, with net revenue reaching $45.3 million, up 69% year-over-year, driven by a 77% increase in TRUBAR revenue and expansion into new markets.

• TRUBAR expanded retail presence to 15,000 stores, securing partnerships with Costco, Whole Foods, Walmart, CVS, and GNC.

• Paused all other business development to concentrate resources on TRUBAR, citing it as a unicorn opportunity.

• Achieved positive Adjusted EBITDA of $0.5 million, a 151% improvement from 2023.

Financial highlights

• Gross revenue was $55.9 million, up 89% from $29.6 million in 2023, with TRUBAR sales contributing $43.6 million, a 77% increase year-over-year.

• Gross profit rose 77% to $13.3 million, with gross margin at 29% versus 28% in 2023.

• Operating costs increased 25% to $16.2 million, reflecting strategic investments.

• Net loss from continuing operations was $11.5 million, compared to $7.5 million in 2023; excluding warrant liabilities, net loss improved to $4.4 million from $8.5 million.

• Direct-to-consumer revenue represented 11% of TRUBAR sales, with DTC sales growing 365% from Q1 to Q4 2024.

Outlook and guidance

• Targeting expansion from 15,000 to over 25,000 retail doors in 2025, including further international growth.

• Management expects continued growth in 2025, focusing entirely on TRUBAR, with expanded distribution, marketing, and innovation.

• Guidance to be provided after Q1, pending several significant deals.

• Key milestones for the next 12 months include new product launches, expanded distribution, and increased marketing.